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JOINT CIRCULAR No

JOINT CIRCULAR No. 04/1999/TTLT-BKH-BTC OF NOVEMBER 1st, 1999 GUIDING THE IMPLEMENTATION OF THE REGULATION ON THE MANAGEMENT AND USE OF AID FROM FOREIGN NON-GOVERNMENTAL ORGANIZATIONS

(issued together with the Prime Minister’s Decision No. 28/1999/QD-TTg of February 23, 1999)

On February 23, 1999 the Prime Minister signed Decision No. 28/1999/QD-TTg issuing the Regulation on the management and use of aid from foreign non-governmental organizations (FNGOs), hereinafter referred to as the FNGO Aid Regulation for short.

To implement Article 3 of the Decision, the Ministry of Planning and Investment coordinates with the Ministry of Finance in jointly guiding a number of major issues (apart from the separate guidance for each field provided by the concerned ministries according to their respective functions) in the implementation of the FNGO Aid Regulation.

The management of the FNGOs’ activities shall comply with the Prime Minister’s Decision No. 339/TTg of May 24, 1996 on the establishment of the Working Committee on Non-Governmental Organizations and the Prime Minister’s Decision No. 340/TTg of May 24, 1996 issuing the Regulation on the activities of foreign NGOs in Vietnam.

Chapter I

GENERAL PROVISIONS

1.1. Contents and scope governed by the Regulation:

The contents of the FNGO Aid Regulation aim to regulate the management and use of the FNGO aid.

The FNGO aid is the aid which does not belong to the official development assistance (ODA) source or belongs to this source but granted through universities, research institutions... or FNGOs for implementation in Vietnam.

The scope governed by the FNGO Aid Regulation includes:

a/ The foreign sides directly providing FNGO aid for development or humanitarian purposes rather than profit-making purposes (hereinafter referred to as foreign sides for short), including:

- Foreign non-governmental organizations.

- Foreign groups or companies which provide financial support.

- Foreign universities, research institutions, centers, funds and agencies.

- Friendship associations and societies established in foreign countries.

- Foreign individuals and overseas Vietnamese.

b/ Subjects receiving FNGO aid (hereinafter referred to as aid-receiving agencies):

- The ministries, ministerial-level agencies and agencies attached to the Government.

- The provinces and centrally-run cities.

- The central mass organizations and associations established in accordance with Vietnamese laws.

c/ FNGO aid as non-refundable aid provided in the following forms:

- Programs and projects: Aid for the implementation of programs and projects with concrete objectives and activities described in detail in the program or project documents with the contents stated in Appendix 1.

- Non-project aid: Aid in cash or in kind (goods, supplies, machinery, equipment...) for economic development, humanitarian, emergency relief, scientific cooperation, training, cultural, sport... purposes.

Various forms of property transfer which can be regarded as gift-giving and fall outside the above-mentioned categories, shall not be subject to this Circular.

1.2. Below are the fields having priority in using FNGO aid:

a/ Health, population and family planning, care and protection of mothers and children;

b/ Education and training;

c/ Social affairs;

d/ Rural and mountainous development, hunger elimination and poverty alleviation, small-scale water supply and drainage, small-scale credit...;

e/ Environmental and ecological protection;

f/ Support for scientific and technological research and application;

g/ Culture, sports...;

h/ Emergency relief.

Chapter II

MOBILIZATION, NEGOTIATION, APPROVAL AND SIGNING

2. Preparation and approval of the contents of programs, projects and non-project aid

2.1. For programs and projects:

2.1.1 Preparation:

- Basing themselves on the guidance of the Ministry of Planning and Investment, the aid-receiving agencies (stated in Item 1.1, Point b of this Circular) shall guide the implementing agencies (program or project owners) to formulate program or project documents according to the contents described in Appendix 1 so as to propose the foreign sides to provide financial support.

- After the foreign sides send documents notifying their pledges to provide financial support or consider financing the programs or projects, the aid-receiving agencies shall complete the program or project dossiers and send them to the Ministry of Planning and Investment as well as concerned agencies (the Ministry of Finance, the Union of Vietnam Friendship Organizations and the Government’s specialized management agencies related to the program or project’s content) to request for their evaluation or agreement and approval. A valid program or project dossier shall include:

a/ The aid-receiving agency’s written request for evaluation or agreement and approval.

b/ The program/project document (in Vietnamese and English or the language of the financing country). This is the document which has been consented by the aid-receiving agency and the foreign side.

c/ The foreign side’s document notifying its pledge to finance or consider financing the program or project.

d/ The draft agreement to be signed between the aid-receiving agency and the foreign side (such as the memorandum of understanding or agreement) after the program/project document has been approved by the competent levels.

e/ A copy of the permit issued by the Working Committee on Non-Governmental Organizations to the FNGO (under the Government’s Decision No. 340/TTg of May 24, 1996). In cases where there is no such permit, the aid-receiving agency should coordinate with the foreign side in working with the Working Committee on Non-Governmental Organizations in order to examine and complete necessary formalities.

2.1.2 Approval:

- For programs and projects falling under the approving jurisdiction of the Prime Minister (stated in Article 5, Clause 1, Items a and b of the FNGO Aid Regulation).

Within 10 days from the date the Ministry of Planning and Investment and concerned agencies (the Ministry of Finance, the Union of Vietnam Friendship Organizations and the Government’s specialized management agencies) receive the full and valid dossier, the concerned agencies must send their official opinions in writing to the Ministry of Planning and Investment for organizing the evaluation. If, past the above time limit, they have no written opinions, they shall be deemed to have agreed with the contents of the program or project documents.

Within 10 days after receiving the opinions of the agencies, depending on the nature of each program or project, the Ministry of Planning and Investment shall organize the evaluation or sum up these opinions for submission to the Prime Minister. Agencies participating in evaluation may include the Government Office, the Ministry of Finance, the Union of Vietnam Friendship Organizations, the concerned ministries, branches and/or localities, which shall be invited in writing by the Ministry of Planning and Investment, depending on specific programs or projects.

The evaluation results shall be recorded in the evaluation report. Within no more than five days from the evaluation date (if the program or project needs no adjustment or amendment), the Ministry of Planning and Investment shall submit the program or project to the Prime Minister for consideration and approval.

In cases where the program or project needs to be adjusted or amended the aid-receiving agency shall have to coordinate with the foreign side in revising it according to the results recorded in the evaluation report. For matters which should be adjusted or amended with the disapproval by the foreign side, the aid-receiving agency shall have to send a written explanation therefor to the Ministry of Planning and Investment for consideration and reporting to the Prime Minister for decision.

After the Prime Minister has approved the program or project, the aid-receiving agency shall inform the foreign side of the approval so as to proceed with the signing and implementation of the program or project.

Within 15 days after the signing, the aid-receiving agency shall send the signed documents to the Ministry of Planning and Investment and concerned agencies.

- For programs and projects falling under the approving jurisdiction of the ministers, the presidents of the People’s Committees of the provinces and centrally run cities or the heads of the ministerial-level agencies and agencies directly under the Government as well as mass organizations (stated in Article 5, Clause 2, Item a of the FNGO Aid Regulation).

Within 15 days after receiving the full and valid program or project dossier, the Ministry of Planning and Investment shall make and send its written consent to the above-mentioned competent agency as basis for consideration and approval. In cases where a program or project proposes equipment, supplies, transport means..., subject to import restrictions, the Ministry of Planning and Investment shall seek the written opinions thereon from the Ministry of Finance and concerned ministries and branches (if necessary) before giving its consent. If the concerned agencies still have divergent opinions the level with the approving competence shall have to report such to the Prime Minister for his/her opinion.

Within 15 days after the program or project is approved, the aid-receiving agency shall inform the foreign side of the program or project approval decision for completion of the subsequent necessary formalities, and, at the same time, send the approval decision (the original) and the signed documents to the Ministry of Planning and Investment, the Ministry of Finance, the Government Office, the Ministry for Foreign Affairs and the Union of Vietnam Friendship Organizations.

2.2. For non-project aid

2.2.1. Preparation:

- The aid-receiving agency shall send to the Ministry of Finance as well as the concerned agencies (the Ministry of Planning and Investment, the Union of Vietnam Friendship Organizations and the Government’s specialized management agency related to the aid contents) the valid dossier, including:

a/ A written request for permission to receive the aid.

b/ The foreign side’s document notifying its financing pledge enclosed with a list of aid items in kind (goods, supplies, equipment, transport means...) already agreed in terms of their quality, quantity, type, value and subject beneficiaries; or its pledge to provide financial support (in cash) accompanied with the activities to be carried out with such financial source. If the aid is sent to different units, there must be a plan on the distribution of such aid in both quantity and value to each unit on the basis of the written request of each aid-receiving unit.

c/ The estimate of expenses and reciprocal capital allocated from the domestic funding source for implementing the reception of the pledged aid per subject beneficiary (if any).

d/ A copy of the permit issued by the Working Committee on Non-Governmental Organizations to the FNGO (under the Government’s Decision No. 340/TTg of May 24, 1996). In cases where there is not such permit, the aid-receiving agency should coordinate with the foreign side in working with the Working Committee on Non-Governmental Organizations to examine and complete necessary formalities.

2.2.2. Approval:

- For aid falling under the approving jurisdiction of the Prime Minister as stated in Article 5, Clause 1, Item c of the FNGO Aid Regulation:

Within 10 days after the Ministry of Finance and the concerned agencies of the Government receive the full and valid dossier, the concerned agencies shall send their official opinions in writing to the Ministry of Finance. If, past this time limit, the above-mentioned agencies have no written opinions, they shall be deemed to have agreed therewith.

Within 10 days after receiving the agencies’ opinions the Ministry of Finance shall sum them up for submission to the Prime Minister for consideration and decision.

With regard to forms of aid in goods which shall, with the consent of the foreign side, be sold in Vietnam for purchase of other kinds of goods, the Ministry of Finance shall seek the opinions of the concerned agencies and submit them to the Prime Minister for consideration and decision.

After the Prime Minister has approved the aid, the aid-receiving agency shall inform the foreign side of the approval so as to proceed with the signing and implementation thereof.

- For aid falling under the approving jurisdiction of the ministers, the presidents of the People’s Committees of the provinces and centrally run cities, the heads of the ministerial-level agencies and agencies directly under the Government as well as mass organizations (stated in Article 5, Clause 2, Item b of the FNGO Aid Regulation):

Within 15 days after receiving the full and valid dossier, the Ministry of Finance shall give its written consent so that the above-mentioned agency with the approving competence can approve and organize the aid reception. In cases where the aid includes commodity items subject to import restrictions (used cars, motorbikes, goods and equipment...) the Ministry of Finance shall seek the written opinions thereon from the Ministry of Planning and Investment as well as the concerned ministries and branches (if necessary) before giving the consent. If the concerned agencies still have divergent opinions, the level with the approving competence shall have to report such to the Prime Minister for decision.

Within 15 days after approving the aid granted by the foreign side, the aid-receiving agency shall inform the foreign side of the approval decision and, at the same time, send the approval decision (the original) to the Ministry of Finance and proceed with the aid-certifying procedures.

2.3. For aid in the form of sending voluntary specialists, before accepting these voluntary specialists, the aid-receiving agency shall send a document thereon to the Government Office, the Ministry of Planning and Investment, the Ministry of Finance, the Union of Vietnam Friendship Organizations and other concerned agencies for their opinions.

2.4. For emergency aid

When localities have a demand for emergency aid, they should immediately notify in writing the information about the level of damage caused by natural calamities to the Ministry for Foreign Affairs and the Union of Vietnam Friendship Organizations as the basis for submission to the Prime Minister for decision.

Within seven days after receiving the notice on the foreign side’s pledge to grant emergency aid, the receiving agency shall send a written request for permission to receive such aid to the Ministry of Finance.

Within 10 days after the aid-receiving agency sends such written request, the Ministry of Finance shall submit it to the Prime Minister for consideration and approval of the emergency aid. Where the emergency aid needs to be granted to several units which are to be identified, the Ministry of Finance shall propose the plan on the aid distribution and management to the Prime Minister for consideration and approval.

After the Prime Minister has approved it, the Ministry of Finance shall guide the aid-receiving agencies to carry out the approved plan.

For emergency aid to be implemented in the form of rehabilitation and development programs or projects, the approval procedures stated at Point 2.1 of this Circular shall be carried out.

Chapter III

FNGO AID IMPLEMENTATION

1. The implementation of programs, projects and various forms of aid granted by the foreign sides shall only be effected after the competent levels have so approved.

Supplies, goods, machinery, equipment... belonging to the programs, projects or non-project aid imported into Vietnam without the approval of the competent levels shall all be considered illegal and dealt with in accordance with current laws.

For sums of money directly transferred or remitted by the foreign sides to the implementing agencies (program or project owners), aid-certifying procedures must be completed at the Ministry of Finance before they can be used.

2. Adjustments and supplements to increase the programs’ or projects’ funding:

When having a demand to adjust and supplement the funding or change the objective and/or contents of a program or project approved by the Prime Minister, the aid-receiving agency shall send a written request together with a detailed explanation therefor to the Ministry of Planning and Investment and concurrently to the Ministry of Finance, the Union of Vietnam Friendship Organizations and the concerned specialized management agencies of the Government. If, after 15 days from the time the aid-receiving agency sends such written request, the agencies send no written opinions to the Ministry of Planning and Investment, they shall be deemed to have agreed therewith, and the Ministry of Planning and Investment shall sum up and submit such to the Prime Minister for consideration and decision.

In cases where the concerned agencies have divergent opinions the approving level shall report such to the Prime Minister for decision.

3. The financial management of the FNGO aid shall comply with the Finance Ministry’s Circular No. 22/1999/TT-BTC of February 26, 1999.

4. The regime of reporting on the implementation of FNGO aid shall comply with Article 18 of the FNGO Aid Regulation and according to the forms in Appendices 2 and 3 of this Circular.

5. If, in the course of program or project implementation, arise problems that may greatly affect the project implementation or there is disagreement between the financing side and the Vietnamese side, the aid-receiving agency shall report such in writing to the Ministry for Foreign Affairs, the Ministry of Planning and Investment, the Ministry of Finance and the Union of Vietnam Friendship Organizations for consideration and coordination in settlement.

This Circular takes effect 15 days after its signing. If, in the course of implementation, any problems arise, the ministries, localities and concerned units should timely report them to the Ministry of Planning and Investment and the Ministry of Finance for further supplement and perfection of this guiding Circular.

Minister of Planning and Investment
TRAN XUAN GIA

Minister of Finance
NGUYEN SINH HUNG